The research article presents a Distributed Rail Signalling and Traffic Control System (DRiSTaCS) that replacestraditional centralized signalling with a fully distributed, node-based architecture for modern rail networks. Each train, signal, andswitch functions as an autonomous node, processing local sensor data and executing real-time control logic over encryptedTCP/IP links within a closed network. The system integrates both fixed block signalling in dense traffic corridors andmovingblock signalling on long-distance routes, enabling dynamic headway adjustment while preserving safety margins. Multi-modalsensor arrays, including magnetic, optical, and pressure sensors, continuously verify track and switch states and feedpredictivemaintenance algorithms that transition asset management from reactive to proactive strategies. The communicationbackboneoperates in the 850 MHz to 2.1 GHz band with redundant GSM/GPRS channels, ensuring low-latency data exchangeandresilience against link failures and cyber intrusions. A self-healing design allows neighboring nodes to reroute traffic andassumecontrol during localized faults, avoiding single points of failure inherent in legacy architectures. Hardware is modular, combiningLinux-based high-performance controllers, RP2040 and STM32 microcontrollers, and dedicated ultra-low-power boards optimizedfor deterministic timing and continuous field deployment. Middleware in C/C++ and Node.js coordinates protocol handlinganddata aggregation, while computationally intensive tasks such as sensor fusion and route optimization are offloadedtospecializedprocessing nodes. Experimental results on custom communication modules and differential high-speed buses demonstratereliableoperation up to the sub- MHz range with robust packet delivery and timing integrity. Overall, DRiSTaCS delivers a scalable, secure,and automation-centric signalling framework that improves safety, availability, and maintainability in next-generationrailwaysystems. Keywords: block signalling, communication security, distributed architecture, DRiSTaCS, fault tolerance, predictive maintenance,railway automation, real-time control, sensor fusion, traffic management